Posts Tagged ‘KONG’

Bearish Options Traders Take to Caterpillar Put Options

 Today’s tickers: CAT, KONG, ACOR & AXL

CAT - Caterpillar, Inc. – The machinery maker’s shares fell during the past five trading sessions and started out this week on the decline, as well. Shares in CAT fell briefly this morning, but reversed course to rally as much as 1.8% to an intraday high of $108.27. But, the rebound in the price of the underlying stock today may not be a lasting trend according to some options players initiating bearish stances on Caterpillar today. It looks like one pessimist purchased a put spread, buying around 3,000 puts at the June $100 strike for a premium of $1.39 each, and selling the same number of puts at the lower June $90 strike at a premium of $0.26 a-pop. The net cost of initiating the spread amounts to $1.13 per contract. Thus, the trader starts making money if CAT’s shares drop 8.7% from today’s high of $108.27 to breach the effective breakeven point on the spread at $98.87 by expiration in June. Maximum potential profits of $8.87 per contract are available to the investor should shares plummet 16.9% to trade below $90.00 at expiration next month. Longer-term bearish sentiment appeared in January 2012 contract put options. One trader purchased 5,000 deep out-of-the-money puts at the January 2012 $72.5 strike for a premium of $1.59 each. Rising levels of options implied volatility on CAT as well as bearish movement in the share price will benefit the investor by lifting premium on the puts, while the erosion of time value on the long position will work against him. The puts may have been tied to stock. Options traders are exchanging roughly 1.6 put options on the stock today for each single call option in play as of 12:30pm in New York.

KONG - KongZhong Corp. – The Beijing, China-based wireless media company popped up on our scanner this morning due to predominantly bearish activity in June contract options. Shares in KongZhong Corp. plunged 24.9% during the session to touch an intraday…
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Calls Hot on OSI Systems After Failed Terror plot

Today’s tickers: OSIS, SEED, AMZN, KONG & TER

OSIS – OSI Systems Inc. – Investors were keen to put a name on the company that might benefit from a boost to security spending, which is behind the 12.5% rally in shares of OSI Systems today to $28.22. The previous 52-week high stood at $25.64 in the California-based company that makes critical electronic gadgetry to include complex security and inspection systems. The fallout from the Christmas Day arrest of a young Nigerian who apparently attempted to set off an explosive device on a Detroit-bound airplane is fast trickling through to who might win orders from the office of homeland security. Option volume in OSI Systems is a rare thing as indicated by the scant vale of open interest at 4,341 lots. Call option buyers at the January expiration saw to it that the company remains on investors’ radar after they likely doubled the prevailing number of option positions on Wednesday. Some 4,700 calls at the $30 strike were bought starting at 25 cents per contract and rising to as much as $1.00 each as the shares rose in value. The delta reading of 33% implies a one-in-three chance that the share price will rise by a further 6.3% within the next 18 days.

SEED – Origin Agritech – There was a wave of call option activity at Origin Agritech following the technology-focused seed development company’s announcement that it had bought back the remainder of its outstanding notes. The move will probably strengthen its balance sheet and helped spur its share price 25% higher to $12.15. Last month the stock rose to about $15 after the Chinese government said it would work with the company to grow modified corn and rice. Heaviest call volume was seen at the January $12.5 strike where 4,400 lots have traded from Tuesday’s close of 10 cents to 90 cents. The $15 strike calls have traded 1,600 times at an unchanged 30 cents. Option implied volatility spiked from 80% to 103% as uncertainty grew as investors demanded higher premiums to sell options. At the January 10 strike investors appeared swift to sell more than 4,000 put options as low as 40 cents, down from Tuesday’s closing price of $1.10 in the expectation that Origin will remain firm.

AMZN – Amazon Inc. – One investor appeared to take out some protection against a possible decline in shares of…
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Phil's Favorites

What China wants: 3 things motivating China's position in trade negotiations with the US

 

What China wants: 3 things motivating China's position in trade negotiations with the US

Courtesy of Penelope B. Prime, Georgia State University

Relations between the U.S. and China have deteriorated sharply in recent days after trade negotiations broke down, leading some to suggest we are on the cusp of a new “cold war.”

President Donald Trump blames the resumption of hostilities on China. Specifically, he and his negotiators say their Chinese counterparts backtracked on an agreement to change laws aimed at enforcing the ...



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Zero Hedge

White House Planned To Use Huawei As Trade 'Bargaining Chip'

Courtesy of ZeroHedge

If there was any lingering doubt that President Trump has treated Huawei like a 'bargaining chip' during trade talks with the Chinese, Bloomberg just put the issue to rest.

In a report sourced to administration insiders, BBG reported that the Trump administration waited to blacklist Huawei until talks with the Chinese had hit an impasse, because they were concerned that targeting Huawei would disrupt the talks.

...



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Kimble Charting Solutions

Commodities; Long-Term Bottom Being Created This Month?

Courtesy of Chris Kimble.

Is the Thomson Reuters Equal Weight Commodities creating a long-term bottom? What the index does at (3) over the next few weeks, will go a long way to answering this important question!

Commodities don’t have much to brag about over the past 8-years, as lower highs have taken place since the peak back in 2011. After the peak in 2011, they have created falling channel (1).

The index hit the top of this channel the prior two months at (2), creating back to back bearish reversal patterns.

Softness this month has the index testing 2017 lows and rising support at (3). While ...



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Insider Scoop

Off-Roaders Are In Buying Mood, BMO Says In Polaris Upgrade

Courtesy of Benzinga.

A long winter and the worst of the U.S.-China trade war may both be in the rearview mirror for off-road vehicle maker Polaris Industries Inc. (NYSE: PII), BMO Capital Markets said Tuesday.

The Analyst

Gerrick Johnson upgraded Polaris from Mark...



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Chart School

Weekly Market Recap May 18, 2019

Courtesy of Blain.

China – U.S. trade talk continued to dominate the week.   A heavy selloff Monday was followed by 3 up days, with Friday moderately down.

On Monday, Chinese officials announced retaliatory tariffs against the U.S., hitting $60 billion in annual exports to China with new or expanded duties that could reach 25%.

Then on Wednesday:

The Trump administration plans to delay a decision on instituting new tariffs on car and auto part imports for up to six months, according to media reports.

...

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Digital Currencies

Cryptocurrencies are finally going mainstream - the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what ...



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Biotech

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

Reminder: We are available to chat with Members, comments are found below each post.

 

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

A map of DNA with the double helix colored blue, the landmarks in green, and the start points for copying the molecule in red. David Gilbert/Kyle Klein, CC BY-ND

Courtesy of David M. Gilbert, Florida State University

...



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ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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